Latest / The Paul Barron Crypto Show / Trump XRP Reserve Comment Pumps Crypto Market🔥

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Trump XRP Reserve Comment Pumps Crypto Market🔥 · The Paul Barron Crypto Show

0:07
Speaker 1: Big news over the weekend. Of course, mister Donald Trump,
0:10
Speaker 1: the President puts out a tweet and what does he
0:13
Speaker 1: talk about? The crypto strategic Reserves. We're gonna break it
0:15
Speaker 1: down for you guys. My name is small Bear. Welcome
0:17
Speaker 1: back into tech path. Let's get started today. To want
0:19
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0:47
Speaker 1: your journey on crypto. Let's get into a couple of
0:49
Speaker 1: the tweets and topics that, of course happened over the weekend.
0:53
Speaker 1: We predicted this actually in a video not too long ago,
0:57
Speaker 1: and that Trump would be considering XRP and Soul in
1:01
Speaker 1: the strategic reserve. So I know Baron Trump must be
1:04
Speaker 1: watching right now. So of course I think that's the
1:06
Speaker 1: reason we're seeing more of this all right, When you
1:09
Speaker 1: take a look at some of the capacities of American crypto,
1:13
Speaker 1: this is something I think we're going to see more of.
1:15
Speaker 1: And that is where you're going to have actually have
1:17
Speaker 1: crypto baskets that are all built around American crypto companies.
1:21
Speaker 1: And of course the question is whether or not we're
1:23
Speaker 1: going to see any kind of tax advantages on whether
1:26
Speaker 1: it's capital gains or other things around this strategic reserve
1:29
Speaker 1: as we start to flow into this. Uphold talked about
1:32
Speaker 1: it and they were hitting on it right there. It
1:34
Speaker 1: staking his back. This is interesting because it is for
1:36
Speaker 1: the US residence, so again a good deal. I think
1:40
Speaker 1: we're going to see a lot more assets that will
1:42
Speaker 1: come into this, So we're going to be watching this
1:43
Speaker 1: one very closely. I want to lead off with a
1:45
Speaker 1: clip real quick that we'll give you guys a little
1:47
Speaker 1: bit of an insight on the weekend recap. Take a look.
1:51
Speaker 2: No, it did, and this is really building upon what
1:53
Speaker 2: he said in January. He says that this new National
1:56
Speaker 2: Crypto Reserve will include bitcoin, ethereum and a trio of
1:59
Speaker 2: high volatility tokens. Solana XRP, and Cardano. He's calling it
2:04
Speaker 2: a move to elevate the industry after what the President
2:07
Speaker 2: described as years of corrupt attacks under the Biden administration. Now,
2:11
Speaker 2: unlike traditional reserves of gold, petroleum, or grain commodities accumulated
2:15
Speaker 2: for strategic security, this reserve would more closely resemble an
2:19
Speaker 2: active portfolio of speculative assets. The shifted language from stockpile
2:24
Speaker 2: to reserve also suggests the US may actively acquire and
2:28
Speaker 2: manage cryptocurrencies rather than just holding seized tokens.
2:31
Speaker 1: So you basically you've got a portfolio manager for crypto
2:35
Speaker 1: under the authority of the US government.
2:38
Speaker 2: And that's one of the biggest concerns here that the
2:40
Speaker 2: government would be picking favorites. And yes, the Cardono, the
2:44
Speaker 2: choice of Cardono and Salana came as a bit of
2:46
Speaker 2: a surprise. At the end of the day, these five
2:48
Speaker 2: tokens that are in this reserve are on the top
2:51
Speaker 2: ten market cap list, and Cardano and Solana offer faster
2:55
Speaker 2: and cheaper alternatives than Bitcoin in ethereum with respect to
2:59
Speaker 2: facilitating payments. The President also has a connection to both
3:03
Speaker 2: of those blockchain. Salana is the blockchain that he used
3:06
Speaker 2: to build his meme token. Meanwhile, you've got XRP, the Ripples,
3:10
Speaker 2: the team behind that token. They donated five million dollars
3:13
Speaker 2: in the XRP token to Trump's inaugural fund, So he
3:16
Speaker 2: has ties to some of these tokens that we're seeing
3:18
Speaker 2: show up here.
3:20
Speaker 1: So as we saw over the weekend, we saw some
3:23
Speaker 1: very radical moves on the market, and of course on
3:26
Speaker 1: Sunday we saw, you know, just crazy numbers. Cardona was
3:29
Speaker 1: up at one time, I saw seventy percent. These are
3:32
Speaker 1: the kind of things that, of course, do concern a
3:34
Speaker 1: lot of people, including a lot of people who are
3:36
Speaker 1: looking at bitcoin as really the primary concern of what
3:40
Speaker 1: a strategic reserve might be if you look at foreign
3:43
Speaker 1: exchange reserves, and this is a good example, is that
3:46
Speaker 1: there has been a decline in foreign exchange reserves over
3:50
Speaker 1: the last little bit. So is it possible that the
3:52
Speaker 1: US government could be setting up for just what they
3:55
Speaker 1: were talking about, which is an active crypto market fund?
3:59
Speaker 1: And I think that's going to be the question that
4:01
Speaker 1: everybody's asking, and of course Michael Saylor is looking at
4:04
Speaker 1: it in a very big way. I'll kind of zoom
4:06
Speaker 1: in on that for you guys. The right digital asset
4:09
Speaker 1: policy is a one hundred trillion dollar opportunity for the
4:13
Speaker 1: US and if you look at that as an investment
4:16
Speaker 1: class for the US government, this could really counterbalance what
4:20
Speaker 1: we've seen in terms of just the US debt overall
4:23
Speaker 1: if we see an active portfolio that's out there earning
4:27
Speaker 1: investment and growth other things. Of course, you had right there,
4:30
Speaker 1: Eric Trump. I love the genius of announcing a strategic
4:32
Speaker 1: reserve on Sunday when traditional markets are closed. And this,
4:37
Speaker 1: of course is Wall Street sleeping. This is something we've
4:39
Speaker 1: talked about for a long's it's definitely going to be coming.
4:41
Speaker 1: The world no longer runs on a Monday through Friday
4:44
Speaker 1: nine to five. I agree with what Trump is saying,
4:46
Speaker 1: but of course I think everybody in the crypto market
4:48
Speaker 1: kind of gets that, and we've kind of had a
4:51
Speaker 1: little bit of an advantage for a while is that
4:54
Speaker 1: retail actually could do twenty four to seven trading where
4:58
Speaker 1: Wall Street was getting kind of high trapped a little bit.
5:01
Speaker 1: Other things is if you look at the US National
5:03
Speaker 1: Bitcoin Reserve in twenty twenty five, in the possibility, obviously
5:07
Speaker 1: it's spiked over the weekend on polymarket, so it is
5:10
Speaker 1: definitely a scenario that could be happening very very soon.
5:14
Speaker 1: Other things that, of course happened on the market right
5:17
Speaker 1: here was throwing thirty billion added to the cryptocurrency market
5:20
Speaker 1: just in the past four hours. This was yesterday. That number,
5:23
Speaker 1: of course has since then started to retrace back down
5:26
Speaker 1: on shorts that are being put back into the market.
5:30
Speaker 1: And then you've got to look at liquidations, who was
5:33
Speaker 1: kind of interesting, h at one of the highest levels
5:35
Speaker 1: since post election day, and this again was yesterday. Obviously
5:38
Speaker 1: they got punished yesterday. So it's a very volatile market
5:41
Speaker 1: that we're dealing with right now. Obviously, if you look
5:43
Speaker 1: at ways to avoid that, just zoom out and look
5:46
Speaker 1: at long term holding and I think you're going to
5:48
Speaker 1: be fine. Big things though, that have happened just so far.
5:53
Speaker 1: In twenty twenty five, President Trump launched his own mean coin.
5:56
Speaker 1: This is right before he took office. The SEC drops
5:59
Speaker 1: all though much all the lawsuits against coinbase and others.
6:03
Speaker 1: SEC says that meme coins are not securities, which kind
6:06
Speaker 1: of opened up another Pandora box. And the US is
6:10
Speaker 1: considering moving spending to blockchain. I think this will be
6:13
Speaker 1: a big one if we start to see that really
6:15
Speaker 1: take place. Trump also says the US should be the
6:18
Speaker 1: leader in crypto, and last, of course, is the US
6:21
Speaker 1: establishing the first ever strategic crypto reserve. So very very
6:26
Speaker 1: big time in crypto, I think in general. And it's
6:29
Speaker 1: also I think a time where now we're probably going
6:32
Speaker 1: to see people actually coming into the market looking at
6:36
Speaker 1: this in a different scope. And I think that's the
6:39
Speaker 1: thing that a lot of people don't completely realize yet.
6:42
Speaker 1: And the question is is it priced in? Do you
6:45
Speaker 1: guys think it is right now? Priced in all this
6:48
Speaker 1: bullish news that we've seen going into the market. Are
6:50
Speaker 1: we getting ready to see another market correction here before
6:54
Speaker 1: a blowoff top or as the bull run already passed
6:57
Speaker 1: this by let me know down in the comments below.
6:59
Speaker 1: We always love to get your feedback. Now, Trump is
7:03
Speaker 1: coming on to say, hey, we're going to do in
7:04
Speaker 1: another announcement, and he's going to do that later this week,
7:07
Speaker 1: and he's talking about tomorrow night is going to be big.
7:10
Speaker 1: I think this is going to be before Congress. The
7:12
Speaker 1: idea behind this obviously will be whether or not Congress
7:15
Speaker 1: is going to approve a reserve if you believe that
7:18
Speaker 1: it has to be required, Because there's some speculation that
7:21
Speaker 1: this doesn't necessarily have to be required, but the US
7:24
Speaker 1: Senate is going to vote this week on repealing the
7:26
Speaker 1: IRS rule, threating threatening crypto and DeFi that'll be a
7:31
Speaker 1: very interesting situation as well, because if we do get
7:35
Speaker 1: favorable tax positions, and if we get American cryptos that
7:39
Speaker 1: could have some sort of subsidies or some sort of loopholes,
7:44
Speaker 1: this will be a significant situation that is going to
7:48
Speaker 1: affect the crypto markets in a very very big way.
7:51
Speaker 1: So we're watching this one with bita breath. Here is
7:54
Speaker 1: of course, David Saxis is the crypto and ai Zar.
7:58
Speaker 1: He took a little heat over the weekend because of
8:00
Speaker 1: Solana being mentioned by President Trump. And you know, as
8:03
Speaker 1: you know, we've talked about this before. You know, David
8:07
Speaker 1: Saxe is and was part of that multipoint investment that
8:09
Speaker 1: really kind of was a VC backed innovation on the
8:12
Speaker 1: early days of Solana. Still holding I'm sure quite a
8:15
Speaker 1: bit of Solana, but he says everything's been sold, so
8:19
Speaker 1: since he took over, he's been out. So a big
8:22
Speaker 1: deal going forward here, and I think that's a good
8:27
Speaker 1: position that you know, obviously you want your cryptos are
8:29
Speaker 1: to be in on for sure, Eleanor talks about a
8:33
Speaker 1: few things, mark shape March shaping up as the crypto
8:36
Speaker 1: month in Washington, a lot of points that you got
8:38
Speaker 1: to look at. CFTC is going to be holding a
8:41
Speaker 1: CEO forum, this is on March six. You got the
8:43
Speaker 1: White House also hosting the first ever Crypto Summit that's
8:46
Speaker 1: this week, and then of course you got March tenth
8:49
Speaker 1: Banking GOP is also going in as well with a
8:53
Speaker 1: day that week to talk about things. And then you've
8:56
Speaker 1: got five planned industry roundtables coming in from the Sea.
9:00
Speaker 1: See don't forget, You've got the Digital Chamber doing their event. Also,
9:05
Speaker 1: the Policy Summit, I believe is later in the month
9:07
Speaker 1: of March, will most likely be at that one. So
9:09
Speaker 1: it's going to be a lot of news for sure.
9:12
Speaker 1: I want to go to another clip here because this
9:13
Speaker 1: will give us an idea as to how does this
9:17
Speaker 1: affect crypto for the rest of the year. Take a look.
9:20
Speaker 3: But I know our technician Mark Newton had talked about
9:22
Speaker 3: this being a cyclical downturn in bitcoin through the end
9:26
Speaker 3: of March. So he was talking mid January getting down
9:30
Speaker 3: to sixty two the weekend five to sixty two.
9:35
Speaker 2: It's just bitcoin.
9:37
Speaker 3: Yeah, it's a tip.
9:37
Speaker 2: Do the math though, it's like, yeah, in a month
9:40
Speaker 2: one oh five to sixty two.
9:42
Speaker 3: Yeah, that's a test of the results people that buy
9:45
Speaker 3: one oh five. Yeah. But as you know, bitcoin makes
9:48
Speaker 3: all of its gains in ten days, So if people
9:50
Speaker 3: sort of try to time this, they're going to miss
9:52
Speaker 3: out on a chance for bitcoin to go back to
9:54
Speaker 3: its high.
9:55
Speaker 2: And by the end at some point in this year.
9:58
Speaker 2: You think it's because last year you thought it might
9:59
Speaker 2: get through one hundred and fifty or even higher.
10:01
Speaker 3: Right, Yeah, I think it's going to do better than
10:04
Speaker 3: one hundred and fifty this year. You do because it's
10:07
Speaker 3: becoming more widely held. You know, Citadel starts trading it,
10:13
Speaker 3: it starts to have more broad acceptance.
10:16
Speaker 1: Broad acceptance. I think that was the key statement right
10:18
Speaker 1: there is with this announcement from President Trump over the weekend,
10:23
Speaker 1: the situation that could occur over the markets in the
10:27
Speaker 1: next few months, acceptance could be a big factor here.
10:30
Speaker 1: So you look at this right here. This also hits
10:33
Speaker 1: on his topic, is that missing bitcoins top ten days
10:36
Speaker 1: a year could cost you basically all your games and gains.
10:39
Speaker 1: And this is what he was referencing during the twenty
10:42
Speaker 1: twenty one bull mark and top ten days a year
10:44
Speaker 1: sawn as dound one hundred and seventy nine percent return
10:46
Speaker 1: compared to negative forty three. So if you were selling
10:50
Speaker 1: in those days, you simply just lost money. But if
10:54
Speaker 1: you were holding through and gain and went after those
10:56
Speaker 1: gains and then made the right kind of exits, then
10:59
Speaker 1: obviously so you saw the difference. Twenty nineteen was no difference.
11:02
Speaker 1: The best ten days there returned to substantial two hundred
11:05
Speaker 1: and seventeen percent against a thirty nine percent loss. So
11:09
Speaker 1: that's the typical nature of crypto in general is you
11:12
Speaker 1: kind of just have to look at this very very
11:15
Speaker 1: pragmatically and not get overly worked up about these massive
11:20
Speaker 1: moves that we see in the markets overall. Here, of course,
11:24
Speaker 1: was the announcement that came in from KOBEEC. This was
11:27
Speaker 1: on Saturday, and it was kind of interesting that we
11:29
Speaker 1: saw this. Twenty four hours ago someone took a two
11:31
Speaker 1: hundred million dollars worth of eth and bitcoin longs on
11:35
Speaker 1: a fifty x. This meant that even a two percent
11:39
Speaker 1: would have liquidated about a two hundred million, So you
11:42
Speaker 1: look at that at the timing, and then Trump just
11:46
Speaker 1: randomly because I don't think anybody was expecting this on
11:48
Speaker 1: Sunday randomly announcing the Strategic Reserve and then putting in eh, Bitcoin,
11:55
Speaker 1: Salana Cardano, and XRP a lot of speculation on this.
12:02
Speaker 1: Arthur Hayes though, it came in and said, hey, don't
12:04
Speaker 1: worry about it, it's just words. Let me know when
12:06
Speaker 1: they get congitional approval to borrow money and revalue the
12:10
Speaker 1: price of gold, because without that they have no money
12:13
Speaker 1: to buy bitcoin and other digital assets out there. Metal
12:19
Speaker 1: lawmen also chimed in on this. I believe a Strategic
12:22
Speaker 1: Digital Reserve can be established by an executive order. I
12:25
Speaker 1: don't believe that, and it'll take Congress to pass an
12:28
Speaker 1: SDAR anytime soon. And also, if you look at the answer,
12:32
Speaker 1: one is yes, unlikely that what level of Congress would
12:35
Speaker 1: fund purchase of digital assets. So it's really a question
12:39
Speaker 1: of whether or not it is required, because many people
12:42
Speaker 1: would say, well, there are other things that are happening
12:44
Speaker 1: in government around investments that don't necessarily require Congress, including
12:49
Speaker 1: this right here. If you just look at the amount
12:51
Speaker 1: of our holdings, this right now is the Board of
12:55
Speaker 1: Governors the Federal Reserve, and that shows your holdings on
12:57
Speaker 1: treasury and securities all. So the ear marked gold meaning
13:01
Speaker 1: gold that we don't actually hold just yet, but have
13:05
Speaker 1: it earmarked for purchasing. So could maybe something like a
13:09
Speaker 1: bitcoin or other digital assets be put into this? This
13:12
Speaker 1: will be the big question that everybody's asking, not only
13:15
Speaker 1: you know, for the US, but I think globally when
13:17
Speaker 1: you look at this impacting the monetary system worldwide, other
13:23
Speaker 1: things out there is there's your petroleums. This was mentioned
13:26
Speaker 1: earlier when they were talking about the comparison of investing
13:30
Speaker 1: in you know, whether it's sweet oil and soor oil
13:32
Speaker 1: some of these our long term investments and getting to
13:35
Speaker 1: these strategic reserves. So has it just become the time
13:41
Speaker 1: for digital assets to be included in these kinds of conversations.
13:45
Speaker 1: Serbody was worried that bitcoin wasn't first, wasn't mentioned in
13:49
Speaker 1: the initial tweet. Trump came back in, of course and
13:52
Speaker 1: include bitcoin and ethereum. Brian Armstrong chimed in, excited to
13:56
Speaker 1: learn more, still form an opinion on asset allocation, but
13:58
Speaker 1: my current thinking is US bitcoin probably would be the
14:02
Speaker 1: best option, simplest, easy to understand, and if folks want
14:05
Speaker 1: a more variety, you could do a market cap weighted
14:07
Speaker 1: index of crypto assets to keep it unbiased. That's one way,
14:11
Speaker 1: but probably not the easiest to do, and everybody was
14:15
Speaker 1: concerned about this. Siegel kind of talked about it. Bitcoin
14:18
Speaker 1: is categorically different than a digital assets my opinion. But
14:22
Speaker 1: if they do want a portfolio manager, and this is
14:25
Speaker 1: the kind of thing, I don't know, and you can't
14:27
Speaker 1: really rule this out because I think these are just
14:29
Speaker 1: new days inside the Trump administration that we could end
14:33
Speaker 1: up with maybe a portfolio manager in there actually managing
14:37
Speaker 1: a crypto portfolio. Wouldn't that be crazy? Here's Peter Shift.
14:40
Speaker 1: Of course, he says, Hey, all of a sudden, he's
14:42
Speaker 1: a Bitcoin weal or bitcoin MAXI, and it gets the
14:45
Speaker 1: rationale for bitcoin reserve. I don't agree with it, but
14:47
Speaker 1: I get it. We have a gold reserve, but bitcoin
14:49
Speaker 1: is digital gold. There you have it, Peter Shift, Bitcoin
14:53
Speaker 1: is digital gold. That's quote man after all these years
14:57
Speaker 1: saying that that's crazy. He also says it's wrong for
15:00
Speaker 1: governments to pick the winners and losers that came from
15:02
Speaker 1: that earlier clip. I do agree with this, but I
15:05
Speaker 1: do believe that they already kind of do this in
15:08
Speaker 1: Congress and in the tactics that are used in all
15:12
Speaker 1: sorts of government contracts and you name it. So does
15:16
Speaker 1: this really apply, you know when it kind of goes
15:19
Speaker 1: into this. Even if Trump thinks crypto will end up
15:22
Speaker 1: being an important industry, he shouldn't stockpile crypto with taxpayer money.
15:25
Speaker 1: I think this is a scenario that still is a
15:28
Speaker 1: goldbug that doesn't want gold to become a secondary asset
15:33
Speaker 1: for the US government. And that's one that I think
15:34
Speaker 1: everybody's watching. The one that was not mentioned over the
15:38
Speaker 1: weekend was Avalanche. Avalanche also an American company, and if
15:43
Speaker 1: you look at the Avalanche founder and CEO, he's on
15:46
Speaker 1: the CFTC board. So they still are a big addressable
15:51
Speaker 1: blockchain for a potential strategic position, but they weren't mentioned.
15:55
Speaker 1: I think a lot of people were questioning why. And
15:59
Speaker 1: maybe if you're looking at something like a stockpile a
16:01
Speaker 1: group of digital assets like this, Avalanche could possibly be
16:04
Speaker 1: in it. So make sure and stick around. If you're
16:06
Speaker 1: not in the diamond circle, get in on that. It's
16:09
Speaker 1: a great place to get additional content. Also, get in
16:11
Speaker 1: our telegram group that's right down below. Use the link
16:15
Speaker 1: down there. I'm in and out of there. Every day,
16:17
Speaker 1: so I always love chatting with you guys. It's free,
16:20
Speaker 1: check it out and of course follow me out there
16:22
Speaker 1: on x at Paul Baron. We'll catch you next time
16:24
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